Bloomberg has a nice summary of the bad news in the most recent report about the financial status of America's primary public benefit program: Social Security. Read it here. Under the newest projections, the social security "trust fund" (little more than a marketing gimmick; there is no trust in the traditional legal sense of the word) will run dry in 2035. Cutting it a bit too close for me.
And that's not the worst news: Medicare will run out of money in 2024 and the Social Security Disability Income program will be broke as soon as 2016.
The summary of the report mentions only one reason for the earlier than previously predicted crises: the recession and high unemployment have reduced contributions. But this is only part of the story. Years of cost-of-living benefit increases without a corresponding increase in contributions plays a larger part in the looming crisis. Of course, who can forget the short-term political idiocy that cut the employee share of contributions to Social Security (the so-called "payroll tax") for the past two years (previously noted here)?
And speaking of political idiocy, observe the comment of Senate Finance Committee Chairman Max Baucus: "The program will be fully funded for more than 20 years, so we have time to find smart ways to improve it.” Translation: "Why worry? I'll be out of office before the shit hits the fan."
Senator Baucus notwithstanding, it doesn't take a genius to solve the problem of Social Security: increase the retirement age, reduce cost-of-living increases, and increase contributions. Anyone want to bet that members of Congress and the presidential candidates will address this problem forthrightly?
I didn't think so.
And that's not the worst news: Medicare will run out of money in 2024 and the Social Security Disability Income program will be broke as soon as 2016.
The summary of the report mentions only one reason for the earlier than previously predicted crises: the recession and high unemployment have reduced contributions. But this is only part of the story. Years of cost-of-living benefit increases without a corresponding increase in contributions plays a larger part in the looming crisis. Of course, who can forget the short-term political idiocy that cut the employee share of contributions to Social Security (the so-called "payroll tax") for the past two years (previously noted here)?
And speaking of political idiocy, observe the comment of Senate Finance Committee Chairman Max Baucus: "The program will be fully funded for more than 20 years, so we have time to find smart ways to improve it.” Translation: "Why worry? I'll be out of office before the shit hits the fan."
Senator Baucus notwithstanding, it doesn't take a genius to solve the problem of Social Security: increase the retirement age, reduce cost-of-living increases, and increase contributions. Anyone want to bet that members of Congress and the presidential candidates will address this problem forthrightly?
I didn't think so.
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